AVANTOR INC (AVTR) Stock Fundamental Analysis
NYSE:AVTR - New York Stock Exchange, Inc. - US05352A1007 - Common Stock - Currency: USD
We assign a fundamental rating of 5 out of 10 to AVTR. AVTR was compared to 57 industry peers in the Life Sciences Tools & Services industry. AVTR scores excellent on profitability, but there are concerns on its financial health. AVTR has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
AVTR had positive earnings in the past year.
AVTR had a positive operating cash flow in the past year.
AVTR had positive earnings in each of the past 5 years.
Each year in the past 5 years AVTR had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 5.87%, AVTR belongs to the top of the industry, outperforming 87.72% of the companies in the same industry.
AVTR's Return On Equity of 11.94% is amongst the best of the industry. AVTR outperforms 87.72% of its industry peers.
Looking at the Return On Invested Capital, with a value of 5.10%, AVTR is in the better half of the industry, outperforming 75.44% of the companies in the same industry.
AVTR had an Average Return On Invested Capital over the past 3 years of 6.58%. This is below the industry average of 9.60%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.87% | ||
| ROE | 11.94% | ||
| ROIC | 5.1% |
ROA(3y)4.42%
ROA(5y)3.49%
ROE(3y)10.57%
ROE(5y)9.15%
ROIC(3y)6.58%
ROIC(5y)6.55%
1.3 Margins
Looking at the Profit Margin, with a value of 10.49%, AVTR belongs to the top of the industry, outperforming 85.96% of the companies in the same industry.
AVTR's Profit Margin has improved in the last couple of years.
The Operating Margin of AVTR (9.41%) is better than 70.18% of its industry peers.
In the last couple of years the Operating Margin of AVTR has grown nicely.
With a Gross Margin value of 33.60%, AVTR is not doing good in the industry: 68.42% of the companies in the same industry are doing better.
In the last couple of years the Gross Margin of AVTR has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 9.41% | ||
| PM (TTM) | 10.49% | ||
| GM | 33.6% |
OM growth 3Y-7.05%
OM growth 5Y2.19%
PM growth 3Y15.1%
PM growth 5YN/A
GM growth 3Y-0.28%
GM growth 5Y1.11%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so AVTR is destroying value.
Compared to 1 year ago, AVTR has more shares outstanding
The number of shares outstanding for AVTR has been increased compared to 5 years ago.
The debt/assets ratio for AVTR has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 2.16 indicates that AVTR is not a great score, but indicates only limited risk for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 2.16, AVTR is in line with its industry, outperforming 57.89% of the companies in the same industry.
The Debt to FCF ratio of AVTR is 5.86, which is a neutral value as it means it would take AVTR, 5.86 years of fcf income to pay off all of its debts.
AVTR has a Debt to FCF ratio of 5.86. This is in the better half of the industry: AVTR outperforms 63.16% of its industry peers.
A Debt/Equity ratio of 0.54 indicates that AVTR is somewhat dependend on debt financing.
AVTR's Debt to Equity ratio of 0.54 is on the low side compared to the rest of the industry. AVTR is outperformed by 63.16% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.54 | ||
| Debt/FCF | 5.86 | ||
| Altman-Z | 2.16 |
ROIC/WACC0.48
WACC10.68%
2.3 Liquidity
A Current Ratio of 1.07 indicates that AVTR should not have too much problems paying its short term obligations.
The Current ratio of AVTR (1.07) is worse than 82.46% of its industry peers.
AVTR has a Quick Ratio of 1.07. This is a bad value and indicates that AVTR is not financially healthy enough and could expect problems in meeting its short term obligations.
AVTR has a worse Quick ratio (0.70) than 92.98% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.07 | ||
| Quick Ratio | 0.7 |
3. Growth
3.1 Past
AVTR shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -6.54%.
AVTR shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -10.82% yearly.
The Revenue has decreased by -2.64% in the past year.
Measured over the past years, AVTR shows a small growth in Revenue. The Revenue has been growing by 2.35% on average per year.
EPS 1Y (TTM)-6.54%
EPS 3Y-10.82%
EPS 5YN/A
EPS Q2Q%8%
Revenue 1Y (TTM)-2.64%
Revenue growth 3Y-2.8%
Revenue growth 5Y2.35%
Sales Q2Q%-2.1%
3.2 Future
AVTR is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 15.78% yearly.
AVTR is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.84% yearly.
EPS Next Y8.14%
EPS Next 2Y11.16%
EPS Next 3Y11.07%
EPS Next 5Y15.78%
Revenue Next Year0.37%
Revenue Next 2Y2.92%
Revenue Next 3Y4.08%
Revenue Next 5Y3.84%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 17.30, the valuation of AVTR can be described as rather expensive.
AVTR's Price/Earnings ratio is rather cheap when compared to the industry. AVTR is cheaper than 94.74% of the companies in the same industry.
AVTR is valuated rather cheaply when we compare the Price/Earnings ratio to 29.63, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 16.00 indicates a correct valuation of AVTR.
92.98% of the companies in the same industry are more expensive than AVTR, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of AVTR to the average of the S&P500 Index (22.68), we can say AVTR is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.3 | ||
| Fwd PE | 16 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of AVTR indicates a rather cheap valuation: AVTR is cheaper than 91.23% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, AVTR is valued cheaply inside the industry as 92.98% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.02 | ||
| EV/EBITDA | 15.05 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The decent profitability rating of AVTR may justify a higher PE ratio.
PEG (NY)2.12
PEG (5Y)N/A
EPS Next 2Y11.16%
EPS Next 3Y11.07%
5. Dividend
5.1 Amount
No dividends for AVTR!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
17.3
-0.19 (-1.09%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryLife Sciences Tools & Services
Earnings (Last)
Earnings (Next)
Inst Owners95.7%
Inst Owner Change-0.97%
Ins Owners1.2%
Ins Owner Change0%
Market Cap11.78B
Analysts77.33
Price Target26.38 (52.49%)
Short Float %4.1%
Short Ratio5.19
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly Dividend0
Dividend Growth(5Y)N/A
DP0%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)1.75%
Min EPS beat(2)0.56%
Max EPS beat(2)2.94%
EPS beat(4)4
Avg EPS beat(4)3.82%
Min EPS beat(4)0.56%
Max EPS beat(4)6.47%
EPS beat(8)5
Avg EPS beat(8)1.89%
EPS beat(12)8
Avg EPS beat(12)1.78%
EPS beat(16)12
Avg EPS beat(16)4.58%
Revenue beat(2)0
Avg Revenue beat(2)-2.94%
Min Revenue beat(2)-3.29%
Max Revenue beat(2)-2.59%
Revenue beat(4)0
Avg Revenue beat(4)-2.49%
Min Revenue beat(4)-3.29%
Max Revenue beat(4)-1.97%
Revenue beat(8)0
Avg Revenue beat(8)-2.23%
Revenue beat(12)0
Avg Revenue beat(12)-2.36%
Revenue beat(16)2
Avg Revenue beat(16)-1.46%
PT rev (1m)-2.98%
PT rev (3m)-7.19%
EPS NQ rev (1m)-9.26%
EPS NQ rev (3m)-19.03%
EPS NY rev (1m)-5.63%
EPS NY rev (3m)-6.4%
Revenue NQ rev (1m)-4.7%
Revenue NQ rev (3m)-9.42%
Revenue NY rev (1m)-0.58%
Revenue NY rev (3m)-1.34%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.3 | ||
| Fwd PE | 16 | ||
| P/S | 1.74 | ||
| P/FCF | 17.02 | ||
| P/OCF | 14.01 | ||
| P/B | 1.98 | ||
| P/tB | N/A | ||
| EV/EBITDA | 15.05 |
EPS(TTM)1
EY5.78%
EPS(NY)1.08
Fwd EY6.25%
FCF(TTM)1.02
FCFY5.87%
OCF(TTM)1.23
OCFY7.14%
SpS9.96
BVpS8.75
TBVpS-4.32
PEG (NY)2.12
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.87% | ||
| ROE | 11.94% | ||
| ROCE | 6.31% | ||
| ROIC | 5.1% | ||
| ROICexc | 5.24% | ||
| ROICexgc | 54.51% | ||
| OM | 9.41% | ||
| PM (TTM) | 10.49% | ||
| GM | 33.6% | ||
| FCFM | 10.2% |
ROA(3y)4.42%
ROA(5y)3.49%
ROE(3y)10.57%
ROE(5y)9.15%
ROIC(3y)6.58%
ROIC(5y)6.55%
ROICexc(3y)6.76%
ROICexc(5y)6.74%
ROICexgc(3y)52.77%
ROICexgc(5y)49.06%
ROCE(3y)8.14%
ROCE(5y)8.11%
ROICexcg growth 3Y9.06%
ROICexcg growth 5Y15.03%
ROICexc growth 3Y-3.1%
ROICexc growth 5Y1.59%
OM growth 3Y-7.05%
OM growth 5Y2.19%
PM growth 3Y15.1%
PM growth 5YN/A
GM growth 3Y-0.28%
GM growth 5Y1.11%
F-Score7
Asset Turnover0.56
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.54 | ||
| Debt/FCF | 5.86 | ||
| Debt/EBITDA | 3.1 | ||
| Cap/Depr | 36.7% | ||
| Cap/Sales | 2.19% | ||
| Interest Coverage | 3.02 | ||
| Cash Conversion | 80.56% | ||
| Profit Quality | 97.26% | ||
| Current Ratio | 1.07 | ||
| Quick Ratio | 0.7 | ||
| Altman-Z | 2.16 |
F-Score7
WACC10.68%
ROIC/WACC0.48
Cap/Depr(3y)35.33%
Cap/Depr(5y)30.17%
Cap/Sales(3y)2.02%
Cap/Sales(5y)1.71%
Profit Quality(3y)143.28%
Profit Quality(5y)453.06%
High Growth Momentum
Growth
EPS 1Y (TTM)-6.54%
EPS 3Y-10.82%
EPS 5YN/A
EPS Q2Q%8%
EPS Next Y8.14%
EPS Next 2Y11.16%
EPS Next 3Y11.07%
EPS Next 5Y15.78%
Revenue 1Y (TTM)-2.64%
Revenue growth 3Y-2.8%
Revenue growth 5Y2.35%
Sales Q2Q%-2.1%
Revenue Next Year0.37%
Revenue Next 2Y2.92%
Revenue Next 3Y4.08%
Revenue Next 5Y3.84%
EBIT growth 1Y-25.55%
EBIT growth 3Y-9.65%
EBIT growth 5Y4.59%
EBIT Next Year15.69%
EBIT Next 3Y11.85%
EBIT Next 5Y10.07%
FCF growth 1Y-4.37%
FCF growth 3Y-6.35%
FCF growth 5Y18.01%
OCF growth 1Y-3.36%
OCF growth 3Y-4.11%
OCF growth 5Y18.89%